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ARE you passionate about fixing cars and restoring them to their former glory? If so, you may have been dreaming about setting up your very own car garage for some time. Before fully taking the plunge, however, you’ll need a tailor-made business plan.
To guide you through this process, we’ve written the guide below to offer our top tips for making your auto repair shop business plan a reality.
1. Why do you need an auto repair shop business plan?
Did you know that 60 per cent of all new businesses in the United Kingdom (UK) are likely to cease trading within their first three years? Durham City Incubator believes that a “lack of business planning” is the number one reason for the failure rate being so high.
Writing out an auto repair shop business plan is, therefore, essential for your new business.
An auto repair shop business plan allows you to identify the level of initial financing that is required. It also helps you:
Anticipate any potential cash flow problems along the way
Estimate how much profit your business is likely to make, within its first three to five years of trading
Obtain financing from the bank - Small
Biz Trends concludes that you are twice as likely to secure funding if you have a business plan
2. What type of auto repair shop should I open?
According to A Plus Auto Glass, there are multiple types of auto repair shops that you could open:
Auto repair service technicians
This is perhaps the most standardised service from the lot. It entails basic checks such as oil fluid levels and electrical.
You’ll likely receive several repeat customers if you choose this model (especially those who drive a considerable amount) because servicing a car is recommended every 12 months or 10 000-12 000 miles (whichever comes first)!
Diagnostic technicians
This model is slightly more specialized. Such technicians carry out skilled checks that underline any issues vehicles might have.
It requires a higher level of skill because these issues cannot be seen on the vehicle’s surface.
Auto system expert
If you choose to offer this model, you will specialise in surveying key systems that the vehicle has.
Engines, brakes and gear sets are all critical systems in most vehicles.